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Key Factors to Increase the Survival Rate of Entrepreneurs

Author

Listed:
  • Manuel Chaves-Maza

    (Universidad Pablo de Olavide)

  • Eugenio M. Fedriani

    (Universidad Pablo de Olavide)

Abstract

This paper aims to explain that there are some variables linked to the type of support service demanded by entrepreneurs, which, along with other characteristics of entrepreneurs and their projects, may account for a significant part of the variations in their survival rate. The analyzed data set is composed by 82 variables and 2221 entrepreneurs from Andalusia (Spain), referring to the period 2009–2023. By applying a structural equations modelling, a model with global significance was achieved: the survival rate could be predicted as a function of 19 of these variables, and the variables that explain a greater amount of the variability of survival are the number of employees and participation in local development programs. The study concludes that survival is significantly affected by: (i) variables that are inherent to the business project of entrepreneurs, such as external finance or type of investment; (ii) and also by the environment in which they develop their activity, through economic indicators or local productivity. It follows that the rigorous application of quantitative techniques can help support services for entrepreneurs: by knowing what factors affect (positively or negatively) to the survival of entrepreneurial projects, the use of public resources dedicated to foster entrepreneurship may be more efficient.

Suggested Citation

  • Manuel Chaves-Maza & Eugenio M. Fedriani, 2025. "Key Factors to Increase the Survival Rate of Entrepreneurs," Eurasian Studies in Business and Economics,, Springer.
    • Handle: RePEc:spr:eurchp:978-3-031-80256-0_1
    DOI: 10.1007/978-3-031-80256-0_1
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